Students Turn to Certificate Programs to Stand Out

Employers looking for job candidates with a college degree may want to broaden their expectations to include candidates who hold certificates in the specific skills they’re seeking, ranging from health care to business, technology, and the trades.

More students earned a certificate in 2023 than in any of the previous 10 years, according to data from the National Student Clearinghouse Research Center (NSCR). There were more certificate earners among college-age students ages 18-20 years old than any other age group. Meanwhile, the number of undergraduate students earning a degree fell for the second consecutive academic year in 2022-23, NSCR reported.

The top 10 areas of study for certificate earners in the 2022-23 academic year were:

1. Health care.
2. Business, management, marketing, and related support.
3. Liberal arts and sciences, general studies, and humanities.
4. Mechanic and repair technologies/technicians.
5. Precision production.
6. Personal and culinary services.
7. Computer and information sciences and support services.
8. Security and protective services. 
9. Construction trades.
10. Engineering technologies/technicians.

Each of the top 10 major fields for certificate earners experienced a year-over-year increase except for business, management, marketing, and related support, which fell 6.1%. “Notably, there was a 1.6% increase in certificate earners in health professions but fewer bachelor’s (-4.5%) and associate degree earners (-3.3%) in that field,” according to NSCR.

Certificates take less time to earn than a college degree, as the learner acquires competency in a specialized area. A majority of certificate programs are online, and are available at community colleges, four-year colleges, and universities and through professional organizations.

While certificates are a path to a skill, not a job, they can expand job opportunities for certificate earners. For example, some employers that are part of the Google Career Certificates program interview candidates who have come through that program.

Certificates are not the same as professional certifications.

Certifications typically are offered by organizations such as SHRM and require the student to undergo a professional training program or assessment.

Employers should view certificates as indicative of whether the individual “has the skills to perform the role, rather than as substitutions for a formal degree or years of experience,” SHRM noted in its report, Making Skilled Credentials Work. 

“In fact, alternative credentials have the advantage of providing specific, evolving knowledge that may be more aligned with the current and future skills desired by employers,” the report stated.

Trends Influencing Interest in Certificates

The increased interest in certificate programs is attributable in part to the pandemic, according to Jeremy Walsh, executive vice president of employer solutions at AllCampus. The organization is a higher education management provider headquartered in Chicago.

“Once we came out [of COVID-19], we saw a shift of people … in a hurry to get in the workforce, upskill, or change their job,” Walsh said of the uptick in the number of certificates earned.

There are many factors influencing this trend, including:

• Individuals are looking for a shorter, quicker impact on their career. For example, a student could enter a 16-week HVAC program and get into the job market sooner, and it’s more affordable than getting a degree in a related program.

“You’ll find some wonderful [job] candidates with certificate programs … as long as they show a level of competency,” and an aptitude to grow their skill, Walsh said.

• Large employers are starting to move away from using a college degree as a job requirement for some positions.

“You used to have the [diploma] to get the interview,” Walsh said. “[But] now people think ‘I can create a different path for myself.’ ”

• Parental expectations have changed.

“Many parents for years were [saying], ‘Go to school, go to school, go to school,’ ” Walsh said. “[But] You can make a really good living in the trades, and the cost of becoming a trade worker and the pathways they’ve created around those jobs may in some cases far surpass the white-collar field.”

Higher Ed: A Change in Attitude

The main influencer, though, is a change in attitude toward higher education.

“Overall, the public started losing trust in higher education for a variety of reasons. The price has continued to increase beyond the level of inflation and not kept up with the salary increases, et cetera,” Walsh said. “And then the labor market is super challenging right now. As a hiring manager you want to see people who have experience.”

Deloitte released findings May 15 on Generation Z and Millennial attitudes toward the world and their financial conditions. Among 14,468 members of Gen Z and 8,373 Millennials surveyed across 44 countries, one-third of Gen Z and Millennials chose to forgo higher education. The primary reasons: financial barriers and family or personal circumstances, as well as seeking careers that don’t require college degrees.

“The main influencer for students,” Walsh said, is the “return on education. It’s [about] how much time, how much money, and what will it get me.”

He recommended employers broaden their tuition benefits to include certificate programs.

“Many companies are not leveraging their tuition reimbursement budget to help their employees utilize [credit-bearing] certificates,” he said. “A simple change in tuition reimbursement policy could unlock opportunities to help employees grow” and serve as a retention tool.

Pros, Cons

There are pros and cons to consider when weighing the value of certificates versus degrees, according to Art Zeile, CEO of Denver-based DHI Group, the parent company of tech recruiting platform Dice.

Certificate programs “are ideal for individuals looking to gain specific and up-to-date knowledge relevant to their field, allowing for quick career pivots and faster entry into the workforce,” he said.

And because they cover less ground than the curriculum of college programs, he added, they “are able to stay more current with the latest tech skills by integrating them into their core areas of focus.”

The advantage of college degree programs, which come with a longer time commitment and higher financial investment, is the curriculum offers “more comprehensive knowledge and the potential for greater long-term career advancement opportunities,” Zeile said. They also “skew toward building strong soft skills” such as communication, teamwork, critical thinking, and emotional intelligence.

“Both certificates and college degrees have their own share of pros and cons,” Zeile said, “and it is important that individuals base their decision on their personal goals, level of commitment, and future career aspirations.”